Do yourself a favor and you'll be glad you did, contact any local Realtors, interview and choose an agent to represent you, you'll thank yourself later.

Anna

Julia--

Often a "highest and best offer" is requested in the circumstances you describe. See this link for a good explantion and discussion of the subject.
http://blog.flippinghomes.com/index.php/articles/highest-and…

John Kavaller NYS Licensed REALTOR®
http://www.catskillcountryrealestate.com/

Julia, If you are not familiar with some of the terms that Carmen just said then you need a Realtor® to assist you. Many people do not know what an REO is, where to get comparables to determine if the house is under or over valued etc. Work with a Realtor®. In most foreclosures they are compensated by the seller and you reap the benefits.

When you say a "foreclosed" home, do you mean an REO? These are, in most cases, represented by a broker. You can negotiate directly with the listing agent or you can use a buyer agent. As for your offer, you can make it below the outstanding mortgage amount or list price. If the house is undervalued as compared to comparables, it may get over asking price. Remember, the house is sold "as is." Be sure to do an inspection.

If you must ask this question then I respectfully recommend you contact a Realtor® in your area that specializes in foreclosures. A specialist has already established a relationship with most banks and although they can't get you special deals they know who to speak to and what rate of return the different banks expect from their foreclosed properties. Once you make the offer and get a contract on the property a realtor will assure that you get it to the settlement table. Many of these contracts fall apart if not handled properly. Also, since you are buying this as a second home it will most likely be considered an investment property and you will be paying a higher interest rate and a realtor can make sure you connect with a lender that is knowledgeable in both foreclosure transactions and investment properties . Much success! Please let us know how you made out.